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Is It Safe To Invest In Enterprise Products Partners L.P. (NYSE: EPD) Now?

Enterprise Products Partners L.P. (NYSE:EPD) price on Friday, March 17, fall -0.67% below its previous day’s close as a downside momentum from buyers pushed the stock’s value to $25.07.

A look at the stock’s price movement, the close in the last trading session was $25.24, moving within a range at $24.66 and $25.34. The PE ratio in trailing twelve months stood at 10.13. Turning to its 52-week performance, $28.65 and $22.90 were the 52-week high and 52-week low respectively. Overall, EPD moved -5.96% over the past month.

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Enterprise Products Partners L.P.’s market cap currently stands at around $54.87 billion, with investors looking forward to this quarter’s earnings report slated for May 01, 2023 – May 05, 2023. The company has a Forward Dividend ratio of 1.96, with its dividend yield at 7.82%. As such, investors might be keen on an upside in the stock’s price ahead of the scheduled earnings report. Analysts project the company’s earnings per share (EPS) to be $0.61, which has seen fiscal year 2023 EPS growth forecast to increase to $2.57 and about $2.67 for fiscal year 2024. Per the data, EPS growth is expected to be 2.80% for 2023 and 3.90% for the next financial year.

Analysts have a consensus estimate of $14.12 billion for the company’s revenue for the quarter, with a low and high estimate of $13.15 billion and $15.63 billion respectively. The average forecast suggests up to a 8.50% growth in sales growth compared to quarterly growth in the same period last fiscal year. Wall Street analysts have also projected the company’s year-on-year revenue for 2023 to grow to $56.73 billion, representing a -2.50% decline on that reported in the last financial year.

Revisions could be used as tool to get short term price movement insight, and for the company that in the past seven days was 1 upward and no downward review(s). Turning to the stock’s technical picture we see that short term indicators suggest on average that EPD is a Hold. On the other hand, the stock is on average a 50% Buy as suggested by medium term indicators while long term indicators are putting the stock in 100% Sell category.

26 analyst(s) have given their forecast ratings for the stock on a scale of 1.00-5.00 for a strong buy to strong sell recommendation. A total of 5 analyst(s) rate the stock as a Hold, 18 recommend EPD as a Buy and 3 give it an Overweight rating. Meanwhile, 0 analyst(s) rate the stock as Underweight and 0 say it is a Sell. As such, the average rating for the stock is Overweight which could provide an opportunity for investors keen on increasing their holdings of the company’s stock.

The technical evaluation for the stock shows the PEG ratio is 1.18, with EPD’s current price about -3.06% and -2.83% off the 20-day and 50-day simple moving averages respectively. The Relative Strength Index (RSI, 14) currently prints 37.47, while 7-day volatility ratio is 2.94% and 1.85% in the 30-day chart. Further, Enterprise Products Partners L.P. (EPD) has a beta value of 1.05, and an average true range (ATR) of 0.50. Analysts have given the company’s stock an average 52-week price target of $31.73, forecast between a low of $28.00 and high of $37.00. Looking at the price targets, the low is -11.69% off current price level while to achieve the yearly target high, price needs to move -47.59%. Nonetheless, investors will most likely welcome a -25.65% jump to $31.50 which is the analysts’ median price.

In the market, a comparison of Enterprise Products Partners L.P. (EPD) and its peers suggest the former has performed considerably weaker. Data shows EPD’s intraday price has changed -0.67% in last session and 3.94% over the past year. Comparatively, DCP Midstream LP (DCP) has moved -0.46% on the day and only 35.98% in the past 12 months. Looking at another peer, we see that The Williams Companies Inc. (WMB) price has dipped -1.80% on the day. However, the stock is -9.47% off its price a year ago. Moreover, Plains All American Pipeline L.P. (PAA) is also down -0.17% in trading on the day while keeping a an uptrend of 12.52% over the past year. If we look at the PE ratio, we find that Enterprise Products Partners L.P.’s ratio stands at 10.13 compared to DCP Midstream LP’s 8.80 and The Williams Companies Inc.’s 16.92. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are down -1.10% and -1.19% respectively in the last trading.

If we refocus on Enterprise Products Partners L.P. (NYSE:EPD), historical trading data shows that trading volumes averaged 4.8 million over the past 10 days and 4.66 million over the past 3 months. The company’s latest data on shares outstanding shows there are 2.17 billion shares.

The 32.63% of Enterprise Products Partners L.P.’s shares are in the hands of company insiders while institutional holders own 27.20% of the company’s shares. Also important is the data on short interest which shows that short shares stood at 21.43 million on Jan 12, 2023, giving us a short ratio of 4.22. The data shows that as of Jan 12, 2023 short interest in Enterprise Products Partners L.P. (EPD) stood at 0.99% of shares outstanding, with shares short rising to 20.27 million registered in Dec 14, 2022. Current price change has pushed the stock 3.94% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the EPD stock continues to rise going into the next quarter.

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